Ebags Case Study
eBags Case Study BUSI: 2003 Operations Administration 11/16/2012 The eBags Association The purpose of this cardboard is assay the business operations of the eBags Corporation, and board recommendations for both the European baggage bazaar and cossack industry based on accepted strengths and weaknesses eBags demonstrates. Through assay and analysis, as a accumulation we will map out the managing advance of the eBags Corporation. eBags is accepted for their avant-garde advance of one stop arcade for baggage such as acceptable biking accoutrements and accoutrements in accession to biking accessories like handbags, computer cases, and briefcases aloof to name a few.
Operations administration is a key basal to the success of the eBags Corporation, and eBags has approved avant-garde and amount able business strategies by utilizing cantankerous anatomic teams aural their organization. With business growing, eBags has been able to access their manufacturers from 10 to 300 and artefact curve accretion from 1000 Banal Befitting Units (SKU’s) to over 15,000 SKU’s (Schroeder, Goldstein, & Rungusanatham, 2011).
Due to the akin of success eBags has able they were able to actualize the eBags artefact band to consumers gluttonous low end baggage at an affordable price; the clandestine characterization consisted of 1000 SKU’s captivated in a barn in Dallas, TX (Schroeder, Goldstein, & Rungusanatham, 2011) With desires of accretion their business eBags faces a cardinal of hurdles in chief which band of business will best accouterment their organization, their suppliers and manufacturers, their customers, all while breeding the accomplished accumulation for their company. eBags Accepted Artefact Breeze Action Analysis
To advance aggressive in today’s bazaar companies charge to apparatus able action flows. With options such as accumulation lines, continuous, accumulation flow, and job boutique it is important for companies to chose the advantage that is best activity to fit both assembly needs and account constraints. Authoritative the amiss best for the artefact breeze action can be actual cher for any company; however, implementing the appropriate action can abate costs and acceleration up assembly time. The purpose of eBags is to actualize one stop arcade for baggage needs and in adjustment to do so a advanced array of articles should be accessible to their consumers. Bag and their articles use a fabricated to banal adjustment accomplishment process, and with assorted manufacturers and the eBags clandestine characterization produced, eBags acquainted best to advance the accumulation breeze or accumulation assembly artefact breeze process. This accustomed articles to be produced in lower volumes while still alms consumers a advanced array of articles to accept from. By utilizing the accumulation breeze process, it requires the use of accepted purpose accessories that does not specialize in authoritative one specific product, which if loaded to abounding accommodation could actualize a abstruse breeze of articles (Schroeder, Goldstein, & Rungusanatham, 2011).
In adjustment to advance authentic account levels, eBags created the eBags Partner Network (EPN) which allows for the articles to column up to date artefact advice to consumers ensuring that discontinued items don’t appearance accessible for acquirement and consumers apperceive the time bare for aback adjustment fulfillment. Assay of eBags in the Cossack Industry and Recommended Artefact Breeze Action Based on Blazon of Chump Order
With such success ante in the baggage industry, eBags saw an befalling to aggrandize their business into adopted terrain, the cossack industry. With the cossack industry actuality a able-bodied accepted burst market, like the baggage market, acceptance for adaptability to aftermath assorted altered styles, designs, qualities, sizes, and colors while advancement a aggressive price. According to Schroeder, Goldstein, & Rungusanatham (2011), the cossack industry is three times the admeasurement of the baggage industry, so venturing into this bazaar would not be an accessible task.
Some of the challenges that eBags faced in this bazaar that they did not in the baggage bazaar included: authoritative consumers acquainted of the adeptness acquirement cossack through an online access and consumers about appetite to try their shoes on to accomplish they are accepting the appropriate artefact afore purchasing (Schroeder, Goldstein, & Rungusanatham, 2011). However, eBags articular that if they could affected the hurdles associated with this bazaar they could aggrandize alike added with accoutrement and accouterment which Schroeder, Goldstein, & Rungusanatham (2011), declared as the bigger online retail market.
With hopes to accomplishment the cossack industry with one stop shopping, eBags should abide to advance the accumulation breeze action for their artefact breeze action of footwear. With the cossack industry actuality analogously burst to the baggage industry, by application the accumulation breeze action eBags will be able to aftermath at low to average volumes acceptance for an appropriately advanced band of articles to accept from. This will acquiesce chump to adjustment assorted pairs of shoes accompanying so they can try them one and adjudge which brace is activity to best fit their appearance and abundance needs.
With this approach, eBags can additionally apparatus the EPN with cossack manufacturers to ensure that up to date articles are accessible eliminating issues of consumers aggravating to adjustment out of banal or discontinued merchandise. Assay of eBags in the European Baggage Bazaar and Recommended Product-Process Action According to a 2002 report, “190 actor internet users had advance beyond Europe and surpassed the 165 actor internet users in the United States” (Schroeder, Goldstein, & Rungusanatham, 2011, p. 513). Accretion the accepted band of business would be safe and able business action for eBags with accessory hurdles to consider.
The baggage industry is not a adopted abstraction for eBags, so to be able to aggrandize their articles into the European bazaar would crave agnate business strategies that they are currently using. No one chump is the aforementioned accordingly their artefact needs, including baggage will about not be the same. The ambition is to actualize one stop arcade for consumers in the European bazaar for their baggage needs and in adjustment to accomplish this, eBags will charge to board a array of articles and curve for their new barter to accept from.
Some of the issues that eBags faces, according to Schroeder, Goldstein, & Rungusanatham (2011), are accent barriers complex in all-embracing shipping, aircraft requirements, cast awareness, and advancement the EPN. To affected the hurdle of all-embracing shipping, eBags can actualize relationships with manufacturers calm to the European market. eBags will be able to acquire the amount of aircraft after accepting to pay the costs associated with all-embracing aircraft unless they fabricated their clandestine characterization accessible to the European market.
Also, this will acquiesce eBags to mirror the bead address archetypal that contributed decidedly to the success of their organization. To accomplish the success eBags is attractive for in this market, it is recommended that eBags continues to advance the accumulation breeze action for artefact flow. This additionally allows for assimilation the EPN into the new bazaar still acceptance for their consumers to accept up to date artefact information. This action will abide to accommodated the business needs of the baggage industry by bearing at low volumes but alms adaptability to board articles that accommodated the low, average and aerial end of the market.
As with the American baggage industry, eBags articles will use a fabricated to banal adjustment accomplishment and the architect will be able to ascendancy the account by application the EPN. Chump Acquaintance Cast Assay of eBags: Strengths and Weaknesses of eBags Processes The akin of chump acquaintance for eBags is low which puts them at the aerial end of a buffered arrangement and the low end of the absorbent arrangement on the chump acquaintance matrix. The eBags website is set up to advice consumers be cocky acceptable during the acclimation action from alpha to end, and because there is no alternation complex their chump account is buffered.
In the accident the chump needs added assistance, they can alarm the chump account centermost and the buzz alternation would abatement beneath absorbent on the chump matrix. This can be advised as backbone for eBags because “separating the chump from the account assembly arrangement allows for greater acclimation of processes and accordingly bigger efficiency” (Schroeder, Goldstein, & Rungusanatham, 2011, p. 91). eBags is able to focus their absorption on artefact assembly and affection administration of their articles after accepting chump interruptions.
This is what Schroeder, Goldstein, & Rungusanatham, (2011), refers to as airheadedness from uncertainty, accurately accession variability. With a fabricated to banal fulfillment, consumers use the eBags website to accept from preselected account absitively by the manufacturer. This action is additionally congenital to accept low akin chump acquaintance to annihilate the appeal variability, which puts eBags at the advantage of accepting a aerial able arrangement because orders are completed abroad from the customer. Weaknesses with a low akin chump ontact causes eBags to absence out added business opportunities. According to Schroeder, Goldstein, & Rungusanatham (2011), aerial chump acquaintance allows for opportunities to up-sell the chump with accessories or added auction items in creating added acquirement for the company. If eBags entered the cossack industry, eventually accretion into accoutrement and clothing, they will absence out on abundant accord of abeyant revenue. Secondly, consumers who accept difficulties abyssal through the eBags website will amount eBags a auction consistent in accident of business.
Analysis of eBags Use of Technology in Providing Aggressive Chump Account Technology it basal to business of eBags as all of their business affairs action through the internet, so it is important that eBags employs a aerial accomplished technology administration to ensure business runs smoothly. The analytical technology acclimated allows the chump to clarify their after-effects by blazon brand, features, color, price, by size, etc, authoritative it accessible and quick to acquisition the appropriate artefact (Horwitt, 2011). To enhance the chump acquaintance eBags has invested a abundant accord into the online arcade acquaintance for their consumers.
According to PRNewswire (2012), eBags has implemented the FreeFlow system, which has accustomed them to board bigger affluent artefact advice to their consumers with bound interruptions in website downloads. eBags additionally congenital what is referred to as ColdFusion software, which will actualize the ultimate chump acquaintance by creating alone food for their consumers (PRNewswire, 2012). The alone abundance will clue the barter spending habits and board artefact recommendations based on antecedent purchased items. Addition important way the internet is acclimated to board aggressive chump account is through the EPN.
The EPN is a way to affix the chump with up to date artefact information, and with the agenda arrangement the manufacturers can clue artefact sales, returns, and chump acknowledgment (Schroeder, Goldstein, & Rungusanatham, 2011). Assay of eBags’ Useof Three Aspects of the “Philosophy of Lean” Angular business practices are important to association adaptation in today’s business market. Companies are attractive for means to break in business by bringing new articles to the bazaar with faster commitment times and college standards of quality.
In adjustment to break in antagonism with the surrounding bazaar best of today’s businesses accept congenital angular cerebration into their business practices by adopting some if not all of the bristles angular tenets. The bristles credo are: 1) what about artefact or account creates value, 2) advance amount beck for anniversary artefact or service, 3) breeze aural a action is simple, smooth, and absurdity free, abbreviation waste, 4) aftermath alone what is pulled by the customer, 5) strive for accomplishment ((Schroeder, Goldstein, & Rungusanatham, 2011).
The aboriginal assumption that eBags demonstrates is creating both a artefact and a account that adds amount for their consumers. eBags carries a advanced alternative of articles and labels to accept from all while alms their barter the accessibility to one stop boutique from anywhere with an internet connection. This has adored eBags’ barter time and money from accepting to biking to a retail abundance that may or may not accept what they are attractive for.
According to Schroeder, Goldstein, & Rungusanatham (2011), this angular assumption has accustomed eBags to attempt on artefact breadth, selection, and accessibility instead of price. The additional assumption that eBags demonstrates is advance of amount beck mapping by congenital the drop-ship model, which is addition way putting the chump in acquaintance with the architect by eliminating the middleman. With the chump orders activity anon to the manufacturer, eBags was able to annihilate the average man (retail merchant location), and actualize a absolute customer-manufacturer relationship.
The beheld representation declared on folio 509 of Schroeder, Goldstein, & Rungusanatham (2011), shows the chump agreement their adjustment on the eBags website, eBags again sends the adjustment to the architect electronically, the architect ships the commodity to the customer, eBags provides the chump with the aircraft tracking cardinal and chump is billed for the merchandise, the architect sends eBags an invoice, and assuredly the architect is paid.
The third assumption apparent by eBags is the creating simple, smooth, and absurdity chargeless action flows that abate waste, which can be apparent through the assimilation of EPN. Because this arrangement allows the manufacturers to ascendancy account levels eBags has been able to abstain any decay associated with account costs and abate aerial costs. Also, according to Schroeder, Goldstein, & Rungusanatham (2011), eBags was able to finer bazaar their articles by removing items that were out of adjustment or discontinued. Bags’ Account Adapt for Accepted Artefact Band Assay and Advocacy Apropos Business Action Reengineering The basal account dejected book is as follows: Based on the accumulation assay of this account adapt it is not recommended for eBags to accede a action reengineering. The ambition of a action reengineering is to redesign and board the business action to access chump satisfaction. eBags accept set themselves afar from their antagonism with their account blueprint, and any changes can be advised a waste.
Footwear Industry Affection Ascendancy Assay and Recommendations The cossack industry is actual altered from the baggage industry, shoes will be on a actuality and a akin of abundance is important back configuring affection control. One footfall in advancement affection ascendancy in the cossack industry is to recruit manufacturers with acclaimed affection affirmation guidelines such as actual inspection, testing, and final inspections of artefact afore alien to the consumer. It is additionally important that the manufacturers appoint knowledgeable, competent, and accomplished agents to ensure that all affection standards are actuality met.
A additional footfall in affection control, according to Schroeder, Goldstein, & Rungusanatham (2011), is to acutely assay the needs of the consumers. Once chump needs are articular the chump is not absent from the picture, chump ascribe is bare architecture blueprint with the use of affection action deployment. This can additionally board advice apropos chump articular activity assumption of the shoes actuality produced consumers are not activity to absorb money on shoes that they are activity to accept to alter every 6 months. Malcolm Baldrige Accolade Assay and Recommendation(s)
Established in 1987, the Malcolm Baldrige Awarad was created to animate businesses to strive for college affection achievement through administration practices and bigger affection after-effects (Schroeder, Goldstein, & Rungusanatham, 2011). Advance amid seven (7) categories: 1) leadership, 2) cardinal planning, 3) chump focus, 4) measurement, analysis, and ability management, 5) workforce focus, 6) action management, 7) results; the Malcolm Baldrige Accolade allows for 1000 absolute credibility accumulated amid the seven categories barometer affection assurance.
As board for the Malcolm Baldrige Award, our appraisal of eBags Congenital for this cardinal accolade is as follows: Class and Items (2010):| Points| Comments| | | | | 1. Leadership| | | 1. 1. | Senior Leadership| 70| Senior administration assignment collaboratively to assay antecedent after-effects and asses approaching business ventures| 1. 2. | Governance and Social Responsibilities| 50| According to PRNews (2012), eBags partnered with Susan G Komen to actualize "pink program". Over 900 blush items offered that eBags contributes 10% of retail sales to the Komen Foundation. | 2. Cardinal Planning| | | 2. | Action Development| 40| Created one-stop arcade for consumers, congenital the drop-ship model, and added EPN and bell-ringer agenda to website to accumulate consumers informed| 2. 2| Action Deployment| 30| Meeting to altercate approaching business affairs for eBags (Footwear Industry or European Market) based on antecedent years sales numbers| 3. Chump Focus| | | 3. 1| Chump Engagement| 40| Chump assurance can be apparent in what Beast (2012), alleged the "Bag an iPad" attack that created adaptability in chump alternation by accretion to the channels that consumers use best to communicate. 3. 2| Voice of the Customer| 45| Voice of the chump can be apparent through the EPN, articles and alternative consumers can apprehend reviews and testimonials. This gives eBags an befalling to apprentice what consumers appetite and accomplish changes to their articles and prcesses if needed. | 4. Measurement, Analysis, and Ability Management| | 4. 1| Measurement, Analysis, and Advance of Alignment Performance| 40| This class reiterates the EPN and bell-ringer account agenda system. Manufacturers are able to admeasurement achievement and use acknowledgment to absorb innovated means to access sales| 4. | Administration of Information, Knowledge, and advice technology| 40| ExtractTarget program, consumers accept up to date artefact and sales information, chump reviews, and accept abatement coupons. | 5. Workforce Focus| | | 5. 1| Workforce Engagement| 10| No advice provided to abutment this category| 5. 2| Workforce Environment| 10| No advice provided to abutment this category| 6. Action Management| | | 6. 1| Assignment Systems| 30| Advancement the internet to abstain bottleneck aural the website.
Flow of the bead address model| 6. 2| Assignment Processes| 45| eBags assignment processes is reflected through their advance of assignment systems. | 7. Results| | | 7. 1| Artefact Outcomes| 90| I accept eBags has a able artefact aftereffect by alms the barter articles in the high, middle, and low end of the market| 7. 2| Customer-Focused Outcomes| 70| The action of the drop-ship archetypal from eBags demonstrates how able the acquaintance is with the company, from shopping, to commitment to the bell-ringer accepting paid. 7. 3| Banking and Bazaar Outcomes| 65| The banking and bazaar outcomes at eBags accept been set by their assurance to action added than 700 altered brands to its market. This is done through cantankerous anatomic teams aural anniversary administration of eBags| 7. 4| Workforce-Focused Outcomes| 65| | 7. 5| Action Effectiveness Outcomes| 70| The action of the drop-ship archetypal from eBags demonstrates how able the acquaintance is with the company, from shopping, to commitment to the bell-ringer accepting paid. | 7. | Administration Outcomes| 70| By utilizing cantankerous anatomic teams to actualize able and able artefact and action flows, eBags has been able to flash amid the industry ambience antecedence for approaching businesses. | | | | | | Absolute | 880| | In cessation alike admitting eBags has some able characteristics that can be accepted in affection administration it additionally has some weaknesses that can be bigger on. These weaknesses impede eBags attempts at aggravating to win the Malcolm Baldridge Award. Assay and Recommendation(s) for eBags Accumulation Alternation Improvements The accumulation alternation of eBags has been slimmed bottomward as low as it can get.
By implementing the bead address archetypal and EPN, all those complex in the accumulation alternation are bare and the accepted processes are befitting consumers blessed with advanced selections of commodity that can fit any style. It is advocacy that eBags is not in charge of advance in anatomy or infrastructure. By advancement cantankerous anatomic teams in artefact and action development eBags can break on top of the antagonism by implementing avant-garde means to advance action flows. Cessation Over the years eBags has fabricated a big name for itself actuality called Internet Retailer Magazine’s Top 50 Websites (Schroeder, Goldstein, & Rungusanatham, 2011).
With hopes to expand, eBags can adventure into a cast new industry that can eventually accessible added doors or they can aggrandize their accepted bazaar into the alien area of Europe. Both ventures will crave cantankerous anatomic teams to ensure that chump wants and needs are addressed while creating action flows that will accomplish acquirement for the company. Regardless of the industry eBags continues to aggrandize in, the use of accumulation breeze action and fabricated to banal adjustment action will board any needs aural any industry. Accoutrements has set antecedence for their innovate means of administering business such as with the bead address model, EPN, bell-ringer agenda system, clandestine label, and one stop arcade with the use of technology. eBags has additionally acclimatized able-bodied to accepted business practices and built-in the bristles credo of angular which was a basal allotment of their success during a time of bread-and-butter crisis. By administering all business transactions, eBags has been accounted a low chump acquaintance aggregation because all acquaintance is done through the eBags website or on the buzz with chump account representatives.
Although eBags is missing out on opportunities for up-sale because of bound chump engagement, they accomplish up their losses by extenuative consumers time and money from accepting to biking for their baggage needs. eBags denticulate rather aerial with the Malcolm Baldrige Accolade but was not absolutely at the mark to win. The class that had the better appulse was workforce focus and actual little advice was accessible to abutment a college account in this category. eBags can assignment on all areas in this class for advance to defended a win of the Malcolm Baldrige Award.
References: PRNewswire. (2012). eBags. com Raises Breast Cancer Acquaintance Year-Round with Pick Blush Program. Retrieved November 9, 2012 from http://www. prnewswire. com/news-releases/ebagscom-raises-breast-cancer-awareness-year-round-with-pick-pink-program-57176017. html PRNewswire. (2012). eBags. com Redefines Chump Account with Cutting-Edge Internet Technology. Retrieved November 2, 2012 from http://www. prnewswire. com/news- releases/ebagscom-redefines-customer-service-with-cutting-edge-internet-technology-73251862. html Horwitt, E. (2011).
The Analytical Web gets Bottomward to Business. Retrieved November 3, 2012 from http://www. computerworld. com/s/article/9209118/The_semantic_Web_gets_down_to_business Schroeder, R. G. , Goldstein, S. M. , & Rungusanatham, M. J. (2011). Operations management: abreast concepts and cases. (5th ed. ). New York: McGraw-Hill/Irwin. Beast Finance. (2012). eBags Boosts Abatement Sales with New ExactTarget-Powered Cantankerous Access Marketing on Facebook, Email, and Mobile. Retrieved November 10, 2012 from http://finance. yahoo. com/news/ebags-boosts-fall-sales-exacttarget-153000369. html.
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